Cryptocurrencies ADA and SAND Criticize US SEC Securities Claims

SEC Securities Claims

When the U.S. Securities and Exchange Commission (SEC) sued major cryptocurrency exchanges Binance and Coinbase, the projects named as examples of securities have released rebuttal comments. .

The SEC included offering unregistered securities as one of the charges against the two companies, and listed multiple securities in the Binance and Coinbase complaints.

Regarding ADA, which is included in both complaints, “Input Output Global (IOG)” updated the blog on the 7th. He said he was aware that the SEC was referring to blockchains like Cardano and ADA.

On top of that, he pointed out that the complaint contained many inaccurate facts and said that it would not affect the operation of IOG, in an effort to alleviate the concerns of the community.

IOG’s view is that ADA is not a securities under the U.S. Securities Act, both past and present. He noted that understanding how decentralized blockchains work is critical to creating responsible legislation.

He accuses the SEC enforcement action of regulating a lack of clarity and certainty for the blockchain industry and consumers.

The IOG said it welcomes industry cooperation with regulators. He called for regulation that recognizes the value of blockchain and understands the role of blockchain in the modern world.

IOG’s statement on the recent SEC filings and the need for regulatory clarity. https://t.co/3xg6FfHDuG

— Input Output (@InputOutputHK) June 7, 2023

other comments

According to crypto media outlet Decrypt, The Sandbox (SAND) co-founder Sabastien Borget mentioned the SEC lawsuit at a media event at the Non Fungible Conference (NFC). SAND was also named as an example of a security in both complaints.

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“We do not necessarily agree with the explanations set forth in the lawsuit, including the determination that SAND is a security,” Borget said. “The Sandbox team is not being sued, and the day-to-day operations remain the same,” he said.

“The United States is an important market for The Sandbox,” he said. About one-third of those who access the game are said to be US users.

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SEC Complaint

The SEC continued enforcement actions without announcing in advance clear rules such as which cryptocurrencies fall under securities and what the criteria are. Many people inside and outside the industry, as well as the IOG, have been critical of the SEC’s enforcement actions.

Instead, the SEC included a description of each stock in the complaint. And both the Coinbase and Binance complaints refer to the Howey test rules in their Legal Framework section.

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Regarding stocks, for example, the SEC notes that ADA is Cardano’s native currency and adopts its own Proof of Stake (PoS) mechanism, and that Cardano has three tokens: “Cardano Foundation”, “IOHK” and “Emurgo”. Point out that the organization is leading.

On top of that, it states that the three organizations are using the profits from the sale of ADA for development and marketing, and that investors expect profits to be obtained by others such as the three organizations. .

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